Quinbrook Infrastructure Partners, a global investment manager, has signed two long-term offtake agreements covering 100% of the solar energy generated at Cleve Hill Solar Park.
Cleve Hill, a solar energy storage + 150 MW battery project, and the largest approved project in Britain, is expected to be commissioned in early 2025. The project was granted development consent in 2020 and was the first of its kind to be approved as a Nationally Significant Infrastructure Project (NSIP).
Quinbrook has signed two separate agreements for the development. The first, accounting for 65% of expected solar generation from Cleve Hill, is a 15-year power purchase agreement (PPA) with retailer Tesco, the largest PPA for solar companies undertaken in Britain to date.
Oil and gas company Shell has signed a ten-year route-to-market agreement to manage the remaining 35% of the development’s solar generation, which was secured by Quinbrook in July 2022 under a 15-year Contract for Difference (CfD ).
Both offtake agreements provide long-term indexed income for Cleve Hill, hedging against inflation and providing income security for investors. The deals are “a testament to this ground-breaking renewable energy project,” according to Keith Gains, Quinbrook director and UK regional leader.
Up to 10% of Tesco’s UK electricity demand will be met through the PPA, an “important step” in the retailer’s journey to carbon neutrality by 2035, said Ken Murphy, Tesco’s group managing director.
He added: “With its ability to provide vital energy storage infrastructure, it is an important part of Britain’s renewable energy strategy, and further evidence of our commitment to tackling climate change and delivering green electricity. from innovative projects like this.”
Rupen Tanna, head of power and systematic trading for Shell Energy Europe, shared that sentiment, saying: “Combined solar and battery storage projects like this have a crucial role to play in driving the UK’s transition to a flexible and low-carbon energy future. .”
The storage element of the project is particularly notable following a failed attempt by Swale Borough Council’s local planning committee to refuse permission for the addition of the Battery Energy Storage System (BESS).
Commenting on the deals, Chris Hewett, CEO of Solar Energy UK, said: “Today’s news is a milestone for Britain’s fast-growing solar industry. The Tesco deal is by far the largest corporate power purchase agreement the sector has ever seen, and underpins the value proposition of large-scale solar. We can expect more deals like this in the coming years as the industry scales up to reach 50 GW of generation capacity by 2030.”
